Jumbo CD Rates @ Advanta Bank
Posted by Best Bank Rates under [ Jumbo CD Rates ] on September 10, 20073 Comments
Advanta Bank currently has some fairly high rates on their jumbo certificates. A look at their rate table shows a 5.40% APY for the 1 year as well as the 18 month maturity terms. Minimum deposit for these jumbo CDs is $99,000. Interestingly, interest is not compounded; I’m not sure if this is standard for Jumbo CDs.
Any deposits into a Jumbo certificate of deposit are FDIC insured up to $100,000.
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3 Comments on “Jumbo CD Rates @ Advanta Bank”
Believe it or not, there are many banks that don’t compound the Jumbo CDs. There are a few potential reasons for this.
1) If you invest $99K and are having the interest compounded, unless the account is a joint account, the CD will grow above $100,000 and the amounts above that are uninsured.
2) Banks have to report CDs that are $100K or higher seperately on their call reports.
3) The additional interest the bank would be paying is quite a bit higher on $99K vs. $10K.
ChrisCD
Jumbo CD Investments, Inc.
One can also get up to $50 million of FDIC insurance on CD accounts, you have to open the account through the Certificate of Deposit Registry Service or CDARS, banks register with the service and it’s overseen by the FDIC, only well capitalized banks can join. You open a CD account with one bank, they spread your money around so you stay under the $100,000 limit, you get one statement and the same CD rate from all the banks your money is deposit in.
your 14 mo 3% CD rate looks pretty good. I will have over $100,000 available to put in a CD by mid October. I want a FDIC insurance CD. Please keep me advised of your jumbo CD interest rates – remember only FDIC for the entire amount and I will only invest in a bank that is FDIC insured. thank you.